Schaeffer's Street Stories: Option Player Optimism on Ericsson Shows Signs of Rising

The shares of Ericsson (NASDAQ: ERIC) are trading more than 1% higher this afternoon following a mix of reports from the company and Wall Street. Before the open this morning, the telecommunications giant announced that it has agreed to divest its TEMS-branded products business, consisting of tools for air interface monitoring and radio network planning, to Ascom. The agreement involves the transfer of about 300 employees, of which around 180 are based in Sweden. The transaction is expected to close in June 2009.

With the divestment, ERIC is refining its leading Professional Services portfolio to focus more purely on the service business. Ericsson believes that this transaction will allow the TEMS business to further realize its growth potential, while Ascom gains significant competence, well-known and industry-leading products, and a sizable customer base.

It's been a busy week for Sony Ericsson Mobile Communications, the equally owned venture between Sony and Ericsson. On Friday, the company issued a profit warning. Today, it said that its president of Sony Ericsson USA and Head of Region North America, Najmi Jarwala, will leave at the end of March to pursue other career opportunities. In the interim, Anders Runevad, Executive Vice President of Sony Ericsson and Head of Global Sales & Marketing, will take on the responsibilities. The company will announce a replacement "in due course."

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